What Options do I have in this Crisis?

As the crisis worsens, more and more people are showing their exposure
to the crisis as we act within the system there is little choice. So, what
alternatives do we have? Well first, I would like to list examples of
what I call exposure.

The People's position
People with life savings in cash and in investment environments (stocks, shares,
trackers, Pensions etc.). People with over-leveraged Mortgages on one, two or
more properties, Loans of all types and sizes. People who are employed
in the early effected industries in this, the early part of the crisis. As we
accept we are caught up in the coming changes, as is, the reality, with our
personal debts and contractual responsibilities. Logic tells you to
try and get out of the way, but when you are trapped with obligations
and responsibilities, all you can do is 'hope' that things will
recover before you are affected. You can only wait and see, and hope.

So how can I help? Unfortunately, the only people I can do something for,
are those who are reading this -even then, only if, they value the
information set out on this site and, at the cost of those who don't
know what to do, who will become one of the statistics of this systemic crisis.

The Players
This is how I believe the coming problems will play themselves out. I will
use the UK, as an example, for many States who have failed the people and
US and China. I will focus on these as an example of some of major
players in the world today. As well as their position in this crisis
and their likely involvement in the mayhem ahead.

Prognosis
I agree with a number of analysts, we are about to see the largest ever shift of
wealth. 1929 will look quite tame in comparison to the degree of
economic shifts we are about to see. Thanks to weak Governments and the
Global Banking System with its nature based on debt and profit as a
means of production, we now must move forward and change our strategy
to recover from this failing position.

As Governments continue do try and spend their way out of this financial and systemic mayhem, they will only achieve certain outcomes: in their attempt to divert and holt the extent of the crash and liquidity crisis and over-legeraged system, at the cost of the depth and extension of the crisis; the bottling up of inflation for our futures; the explosion of public debt, both, for the present and future generations. In addition, Government's around the world, have given their resources to the banks and big business for their recovery. As next year proves to be even worse, more banks will collapse, after requiring public money which will disappear. This, so that the people can adopted their failures in the form of: expanding Debts, Toxic Waste (banks and big business toxic assets),Taxes, indirect and direct -and Government debt, as well as the collapsing industries and their lost jobs, taking hold around the world.

So what's my advice?
With savings and investments in the firing line, there are two defensive actions that can be taken. Currencies and commodities are becoming more volatile than ever. Although the right stratergist can still make use of the International Stock Markets. So, getting outside the system and protecting yourself, whilst still acting with the system will become more and more important. Changing savings into Gold and Silver is a real move, in getting out side the system, but not in Pools, Certificates and ETFs, unless your ETF is a short term speculative activity. You want possession of your metals. Should you have a considerable amount, there are secure storage facilities available that will protect and validate their existence, which is important during liquidation of the asset.

Mortgages and Loans
On the subject of Mortgages and Loans, whilst we may see interest rates stay low for some time. This will only exist whilst Central Banks pay lip service to politicians and as part of their internationl trading, as well as their rhetoric, to lift the domestic and small business Lender's moral during this finance/Banking crisis. If lending did increase, interest rates would follow. Once Deflation has expressed itself on economies, the Fiat Currency production will make its presense known. With governments printing more and more Fiat currency, which will dilute the value of that Fiat paper adding further Stealth Taxes, with inflation. This action will reduce people's income value. At a particular point, things may feel good for some debt payers (due to the early hyper-inflationary character of over printed Fiat currencies). Then, the banks will increase interest rates to cover their lost revenue value or accounts verses the economic cost of running their business.

Properties Loses, LTV
Properties are loosing their inflated values, which have a long way to fall yet. If you calculate the loses at about 43% over the next two years or so, now would be a good time to move out of over-leveraged Mortgages. Selling at slightly below their market value can move you out of the danger zone. Coming back to the market in the future, will see them at the bottom of this fall. With your Fiat currency falling against real money, Gold and Silver -we will see them out perform inflation, as its nature demands. Also, whilst property values continue to fall in the coming period. You will be in a strong position to recover. Be careful to check there are no obligations in your mortgage product that require you to keep the LTV in positive balance. Don't be fooled by housing cost increases, that is the effect of inflation, not value, its the cost of living going up.

There is insufficient time to explain many of the elements or all of the areas of importance to the act of, buying Gold and Silver. Silver is my personal preference, as I feel it will out perform gold. I would be happy to answer any questions asked of me on the subject. The existing system will not promote this action as inteligent, as it is, the antitheses, of the exiting system. Governments will do all they can to take control after the dollar collapses to stop and control precious metal markets whilst they revert to the Gold Standard in some form and away from Fiat Currencies.

Stocks or Commodities
Being in Stocks and Shares at this time is very dangerous and requires real knowledge under the present conditions, such people are very thin on the ground, as we can see with the Stock Markets around the world. Be very careful and pessimistic about the existing perceptions on the
subject. Commodities have room for development but One needs to know their subject. The above statements are far safer at this moment for those looking for security and protection, with the possibility of profit, in real terms existing under the present climate, a real possibility.

Before these conditions run their course try and use this lower interest period if your not already trapped in a fixed interest position to pay off what you can now, Credit Cards, Secure Loans and Even Mortgages, for those in the position to do so. What ever the Governments and media are saying, this situation is going to be with us for the foreseeable future (decades, not years) and we are going to see many changes.


The Future of the Fiat Currency
The stage that will bring the additional global crisis to the next level
will be the collapse of the Dollar. This could happen at any point in the
near future, from one year to seven, but it will happen! With the Central Banks holding IOUs from each other and governments' and particularly China, who hold US IOUs, which are damaging China's economy, in addition to their existing economic problems. If they should put their held US T-Bills, Treasury Notes, on the market or float their currency the Yuan (as apposed to pegging the Dollar,) -the American Dollar will Collapse. When, not if, this happens, the system will free fall again and major changes will take place.

What are my plans.
I am putting together some systems for a number of people, to support those who agree with my concerns of the future outcomes and who want a plan to take care and find a safer and prosperous position. The plan being formulated will take care of: Purchasing, Collection, Storage and Insurance, as well as a strategy for making real money available at all times, for the selling markets and a transfer system, as and when required. As well as the Tax and import and export responsibilies. Also, an account structure, which will be required to make use of the future changes and trading in and outside the system. There are a number of ways to invest in Gold and Silver here is a some examples, which you may already be investing in. But, I have valid reasons for not promoting these investment vehicles and I disagree with a number of these summaries.

Inside Story - China questions the dollar's value - 26 Mar 09 - Part 1